Prior to the election Warren Buffett, the billionaire investor known as the Oracle of Omaha, was quoted in Business Week as saying he doesn’t envy the winner of the UK general election, due to the need to make “politically very unpopular” decisions to cut the deficit.

Now post election BNP Paribas analysts say, the new government will have to present a credible budget to convince investors the nation’s budget deficit is manageable, in order to avoid its sovereign debt losing its triple A status. Taken together with the 16-year high unemployment figures published earlier today, and the outlook for inflation the PM has been provided with a clear picture of the Greek like hole in which the UK economy currently sits. Welcome to number 10.

Off the starting block, in a document setting out agreed policies, the government has rightly stated that “deficit reduction and continuing to ensure economic recovery is the most urgent issue facing Britain.” Dramatic cuts in headcount and services loom high, and the public sector in particular is rightly nervous.

Now to my point. In such a climate of uncertainty we need a brave Prime Minister.

“The Brave PM”

The Brave PM has the opportunity to use a weapon never used before in the public sector, not a secret weapon – it is well known, proven and successfully used in the private sector. Its name is Procurement.

To the Conservative party’s credit, they are the only party to specifically include procurement as a main heading in their manifesto, which ‘only maybe’, suggest a clearer focus on this topic than the other parties, by drawing upon the experience of Gershon and Martin to quantify savings potential. However, Gershon is steeped in the public sector and promotes an incremental response. The opportunity for the Brave PM is to take a more radical, strategic approach to public sector procurement.

The problems with public sector procurement are well documented as are potential solutions. Such a radical approach will require strong leadership, of the sort not seen before. There will be supporters and detractors, but  change only happens by doing something different. I therefore argue that the political fallout from a ‘business as usual’ approach is likely to be much more difficult to manage and have deeper long term consequences for the nation than the alternative, focused on radical change.

Of course, the Brave PM will know this as did Margret Thatcher during her tenure at number 10 and history will ultimately declare if a conservative political dynasty was won or lost.

Nuff said …